Canadian dollar making gains on jobs growth
Daily Currency Update
The Canadian dollar is up again this morning. Employment numbers in Canada showed job growth in the economy for the first time in 3 months. The net employment change was up 22,100 in August which was in line with the expected 25,000. The underlying number showed that all the jobs added though were part time positions which were up about 62.000 with a loss in full time jobs of 40,000. The Loonie is also being helped out slightly by gains in oil prices and a general weakness in the USD as markets set up for rate cuts later this month.Key Movers
The US Dollar Index (DXY) is down this morning by more than 30 points as non-farm payrolls data disappointed, setting the stage for a deeper than expected cut from the FOMC later this month. The employment data for August released this morning showed 142,000 positions being added to the economy last month as compared to the 160,000 expected. Many of the jobs related pieces released this week were weaker than expected, showing a slowing pace of growth. This could lead to a rate decrease of 50 points form the Fed later this month opposed to the long expected 25 point cut.The Euro saw some dips overnight on weaker than expected data from inside the trading zone as German trade balance numbers cam in weaker than expected. The EU’s biggest economy showed a trade surplus of 16.8B EUR, compared to the expected 21B. This was driven by a 5.4% increase in imports against a consensus of 0.3%.
The price of oil in on the rise again this morning with WTI prices approaching $70 barrel again. Oil has been under pressure this week with Libya announcing earlier that they will again begin to export oil into the global market. This has been stabilized though with the OPEC+ decision to put off it’s expected hike in production outputs in order to keep prices up.
Expected Ranges
- EUR/CAD: 1.4972 - 1.5052 ▲
- GBP/CAD: 1.7768 - 1.7858 ▲
- AUD/CAD: 0.9074 - 0.9161 ▲
- USD/CAD: 1.3470 - 1.3566 ▼